Reported operating profit was up +44.6%, driven mainly by strong Core Earnings growth. The first half result includes one-time gains of 136.8 billion yen, including the sale of shares held in Wako Pure Chemical Ltd., the sale of real estate, and the transfer of additional long-listed products to Teva Takeda Yakuhin Ltd.

Underlying Core EPS was up +29.9%, and reported EPS increased +39.2% to 221 yen per share.

"Our Growth Drivers continued to deliver robust double-digit revenue growth, which together with our cost management initiatives led to a significant margin expansion. Furthermore, the ARIAD acquisition is delivering ahead of expectations, and the R&D transformation is well advanced. Although we expect headwinds in the second half of the year, we are still confident to raise our outlook for the full year as we execute against our key mid-term priorities of growing the portfolio, rebuilding the pipeline, and boosting profitability."

Reported Results for H1 (April - September) FY2017

(billion yen)

FY2016 H1

FY2017 H1

Growth

Reported

Underlying2

Revenue

850.8

881.4

+3.6%

+6.7%

Core Earnings1

131.0

187.1

+42.8%

+44.4%

Operating Profit

162.1

234.3

+44.6%

-

Net Profit3

124.3

172.8

+39.0%

-

EPS

159 yen

221 yen

+39.2%

-

Core EPS

139 yen

181 yen

+30.0%

+29.9%

1

Core Earnings is calculated by deducting SG&A expenses and R&D expenses from reported Gross Profit. In addition, certain other items that are non-core in nature and significant in value may also be adjusted.

2

Underlying growth compares two periods of financial results on a common basis, showing the ongoing performance of the business excluding the impact of foreign exchange and divestitures.

The majority of one-time gains were booked in the first half, and the majority of one-time expenses will be booked in the second half. The outlook also assumes loss of exclusivity of Velcade.

Velcade estimates are based on the possible entry of 2 or 3 bortezomib-containing products in the U.S. from November 2017. Depending on various factors there may be an additional opportunity up to 30 billion yen, which will be partly reinvested in the business.

For more details on Takeda's FY2017 first half results and other financial information, please visit https://www.takeda.com/investors/reports/

About Takeda Pharmaceutical Company Limited

Takeda Pharmaceutical Company Limited is a global, research and development-driven pharmaceutical company committed to bringing better health and a brighter future to patients by translating science into life-changing medicines. Takeda focuses its R&D efforts on oncology, gastroenterology and central nervous system therapeutic areas plus vaccines. Takeda conducts R&D both internally and with partners to stay at the leading edge of innovation. New innovative products, especially in oncology and gastroenterology, as well as Takeda's presence in Emerging Markets, are currently fueling the growth of Takeda. Around 30,000 Takeda employees are committed to improving quality of life for patients, working with Takeda's partners in health care in more than 70 countries.

For more information, visit https://www.takeda.com/newsroom/.

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